Political Connection Of Board,investor Relations Management And Firm Value

Investor Relations Management(IRM)is a new type of strategic management of modern enterprises.It is the product of market economy's development and stock right's rise,and its development level has become an important symbol of capital market maturing.Today,it has formed a relationship between supply and demand in the buyer market and market value management has became the assessment means of listed companies,so IRM has been an effective management tool for listed companies to create corporate value and shareholder value,and to strengthen communication with investors and intermediaries.In this context,to study the relationship between IRM and enterprise value can accelerate the process of IRM in China,so as to promote a better development of IRM in China.However,the study of any kind of management cannot be separated from its institutional environment.The behavior of listed companies must be bound by the system,environment and judicial system,especially China is now in the period of economic transition,and its institutional environment is more complex.Political connection is a typical kind of institutional environment,especially for private listed companies.Compared with the state-owned enterprises,private enterprises,which are important forces to promote the development of the national economy,are keen to establish political connections because of the discrimination and unfair treatment in the political and financial environment,so as to obtain the system's support and protection.This paper takes private listed companies as samples to analysis and study the relationship between IRM and corporate value in the context of political connection.In this paper,to analysis the relationship between IRM and corporate value in the context of political connection with empirical approach,the non-financial A-share private listed companies listed on the Shanghai Stock Exchange from 2012 to 2015 are selected as the research objects,and 827 qualified companies are selected as the final samples.It is found that there is a positive correlation between political connection of the board of directors and corporate value and the greater the intensity of the political connection,the greater the corporate value.It is also founded that the relationship between IRM and enterprise value is positive,that is to say,IRM can promote corporate value.Apart from this,this paper also found that political connection influences significantly the positive role between IRM and corporate value.The higher the degree of political connection,the stronger the positive role of IRM to corporate value.